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Compared to Estimates, Ally Financial (ALLY) Q4 Earnings: A Look at Key Metrics
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For the quarter ended December 2023, Ally Financial (ALLY - Free Report) reported revenue of $2.07 billion, down 6.1% over the same period last year. EPS came in at $0.45, compared to $1.08 in the year-ago quarter.
The reported revenue represents a surprise of +3.77% over the Zacks Consensus Estimate of $1.99 billion. With the consensus EPS estimate being $0.44, the EPS surprise was +2.27%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ally Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total interest-earning assets (Average Balances): $186.96 billion compared to the $186.35 billion average estimate based on six analysts.
Net interest margin (as reported): 3.2% versus 3.2% estimated by five analysts on average.
Efficiency Ratio: 68.5% compared to the 59.9% average estimate based on five analysts.
Net charge-offs to average finance receivables and loans outstanding: 1.8% versus the five-analyst average estimate of 1.7%.
Gain on mortgage and automotive loans, net: $3 million versus the six-analyst average estimate of $9.98 million.
Insurance premiums and service revenue earned: $335 million compared to the $320.30 million average estimate based on six analysts.
Total other revenue: $574 million compared to the $494.20 million average estimate based on six analysts.
Other (loss) / gain on investments, net: $85 million versus the five-analyst average estimate of $15.94 million.
Other income, net of losses: $151 million versus the five-analyst average estimate of $156.36 million.
Total financing revenue and other interest income: $3.62 billion compared to the $3.63 billion average estimate based on five analysts.
Total interest and dividends on investment securities: $260 million versus the four-analyst average estimate of $256.97 million.
Operating leases: $371 million compared to the $378.75 million average estimate based on four analysts.
Shares of Ally Financial have returned -6.2% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, Ally Financial (ALLY) Q4 Earnings: A Look at Key Metrics
For the quarter ended December 2023, Ally Financial (ALLY - Free Report) reported revenue of $2.07 billion, down 6.1% over the same period last year. EPS came in at $0.45, compared to $1.08 in the year-ago quarter.
The reported revenue represents a surprise of +3.77% over the Zacks Consensus Estimate of $1.99 billion. With the consensus EPS estimate being $0.44, the EPS surprise was +2.27%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ally Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total interest-earning assets (Average Balances): $186.96 billion compared to the $186.35 billion average estimate based on six analysts.
- Net interest margin (as reported): 3.2% versus 3.2% estimated by five analysts on average.
- Efficiency Ratio: 68.5% compared to the 59.9% average estimate based on five analysts.
- Net charge-offs to average finance receivables and loans outstanding: 1.8% versus the five-analyst average estimate of 1.7%.
- Gain on mortgage and automotive loans, net: $3 million versus the six-analyst average estimate of $9.98 million.
- Insurance premiums and service revenue earned: $335 million compared to the $320.30 million average estimate based on six analysts.
- Total other revenue: $574 million compared to the $494.20 million average estimate based on six analysts.
- Other (loss) / gain on investments, net: $85 million versus the five-analyst average estimate of $15.94 million.
- Other income, net of losses: $151 million versus the five-analyst average estimate of $156.36 million.
- Total financing revenue and other interest income: $3.62 billion compared to the $3.63 billion average estimate based on five analysts.
- Total interest and dividends on investment securities: $260 million versus the four-analyst average estimate of $256.97 million.
- Operating leases: $371 million compared to the $378.75 million average estimate based on four analysts.
View all Key Company Metrics for Ally Financial here>>>Shares of Ally Financial have returned -6.2% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.